In addition to the $2.8 billion, 10-year settlement and a $20.5 million annual revenue-sharing pool for Division I schools, the House v. NCAA lawsuit settlement is also transforming college sports by the creation of the College Sports Commission online portal, NIL Go. Developed and to be administered in partnership with Deloitte, NIL Go was established to oversee all third-party NIL (Name, Image, Likeness) deals exceeding $600. It evaluates whether each such contract falls within a "reasonable range of compensation," a subjective criterion that many believe could lead to future legal disputes.
One glaring issue is that Deloitte officials have already stated that a significant portion of past NIL collective deals would have been rejected under their new formula, with 70% potentially being denied. While most public company NIL deals are valued under $10,000, some athletes proactively secured six-figure deals with Power Four programs before the July 1 deadline, in anticipation of the revenue cap.
The NIL Go system will notify athletes if their deals are cleared, rejected, or flagged for further review. Athletes will then have the option to revise, cancel, or appeal. However, unlike professional leagues, colleges sports lack a collective bargaining agreement, raising questions about the legitimacy of this arbitration process. The new system is sure to face challenges, including potential legal battles if deals are denied, and there are already indications that some parties intend on challenging the clearinghouse's authority.
Another concern is that many athletes, especially those not on campus during the summer, are largely unaware of the new NIL Go platform and its processes. While some expect clear standards for athlete compensation to emerge once the new revenue-sharing model is fully understood, others worry that some athletes may simply fail to submit NIL deals because they are unaware of the new requirements.
Given the rapidly evolving landscape of NCAA regulations, it’s important for student-athletes and those advising them to understand the complexities of NIL agreements. Consulting with legal professionals experienced in athletic or endorsement contracts can help ensure that deals are both compliant and in the athlete’s best interest.
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